Monthly Archives: December 2014

2014 – Section 179 Depreciation Update

Good News on the Section 179 Depreciation Front

Section 179 DeprOn December 19th, congress increased the section 179 depreciation limit from $25,000 to $500,000 for the 2014 tax year.

Bonus depreciation also was extended  for 2014.  Bonus Depreciation is limited to 50% of the cost of the NEW property (cannot be used property).  The total expenditure  limit, for property,  cannot exceed $2,000,000-for section 179 depreciation.

The total amount that you can elect to deduct under Section 179 depreciation cannot exceed $500,000.  This generally extends to all property, other than real property.  It can be used or new property.  The limit for qualified real property(leasehold improvements) deduction is limited to $250,000, and is included as part of the $500,000 maximum under Section 179.  Automobiles are limited to a maximum deduction of $25,000.

If you have not yet made 2014 equipment purchases, and are considering doing so, the following must be done by 12/31/14:

  •  The property MUST be purchased and PLACED INTO SERVICE by 12/31/14.